Given the global demand for secure identity and transaction solutions, Datacard is well positioned to set ambitious growth targets. It is banking on an increasing number of banks offering instant issuance of cards – whether it is a debit, credit, loyalty, healthcare or retail card. RBI discusses strategy with Datacard’s Jim Pond
Minnesota-based Datacard is a private company with approximately 1,400 employees worldwide, founded more than 40 years ago, initially working closely with American Express, Sears and other market leaders to invent the machines that made secure, high-volume credit card issuance possible.
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In the early 1990s, the company developed the first modular systems for high-volume card issuance, pursuing modular designs because they protected customers’ investment, and the company maintains that commitment to modularity today.
Jim Pond, Datacard’s vice-president of financial instant issuance, says: Over the years, we leveraged our secure personalisation technology to move into other areas as well. For example, our solutions are used for a variety of secure identity programmes, including passport, driver’s license and national ID.
In September 2010, Datacard Group acquired Dynamic Card Solutions, which focuses solely on selling instant issuance solutions in the financial market, and this was the foundation for what is now the company’s flagship instant issuance software CardWizard. "To-date our financial instant issuance business is growing and continues to grow worldwide as financial organisations and retailers are seeing the benefits it provides to them and their customers," says Pond.
The company claims it is constantly offering new developments including: increased software development, and expanding its strategy to align government, public sector and regulated industries.
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By GlobalDataThe company is also strongly focused on financial instant issuance growth. Historically, most banks have issued credit and debit cards from a centralised operation. Some created their own in-house operations, some used service bureaus. Recent Datacard innovations – in both software and hardware – now give issuers the ability to issue cards at the branch level.
Datacard is also active in the field of mobile commerce. Pond says: "It’s apparent that mobile applications are becoming omnipresent and many organisations are launching projects with virtual cards and credentials integrated into smartphones. As our customers include mobile applications in their growth plans, it’s a natural step for Datacard Group to move in this direction to better serve them.
Instant issuance
Pond says: "We are seeing rapid growth in instant issuance across the globe as it complements centralised third-party production and drives activation, while reducing issuer costs and the risks of sending the cards and PINs through the mail.
"By offering instant issuance, consumers can receive high-quality, personalised, ready-to-use permanent cards at the opening of an account – instead of having to wait days while their cards are produced and mailed – making immediate purchases simple and convenient. Cardholders continue to want more and more convenience, and they really like new, innovative technologies and personalised offerings, and they like to be empowered. With instant issuance, we can give them all of this."
Pond continues "By offering instant issuance, consumers can receive high-quality, personalised, ready-to-use permanent cards at the opening of an account – instead of having to wait days or weeks while their cards are produced and mailed – making immediate purchases simple and convenient. Additionally, for customers who have misplaced their cards or fallen victim to theft, instant issuance provides an immediate solution for a replacement."
Pond says these, among many other added benefits, are some the reasons to implement instant issuance. Continued consumer trends toward instant gratification, non-cash payment methods and customisation mean that instant issuance is here to stay. "It’s difficult for financial institutions to invest in anything right now that does not show a measurable increase in cost savings and customer satisfaction," he says "Fortunately, instant issuance delivers on all counts."
The key market drivers, Pond asserts, for instant issuance include the convenience of being able to issue new and emergency card replacements in branch, instantly activated cards and a choice of card design.
He claims he can increase profitability and cost savings via increased activation rates and card usage, reduced emergency card replacement costs, cross-selling of other products and services and the gaining of top-of-wallet placement.
In addition Pond claims improvements to security, saying it’s safer than receiving via mail, with the added benefits of comprehensive branch and enterprise level reporting, customer-selected PINs, securely personalised and issued smartcards, and in-house control of data preparation and issuance management.
Datacard has 26 regional offices, with sales and service operations in more than 150 countries. Every day, its solutions are used to personalise and deliver more than 10m cards, 5m smartcards, and 35,000 passports worldwide. Today, the group holds over 300 patents.
The company has implemented instant issuance solution in thousands of branches globally, including banks, credit unions and retailers around the world of varying requirements with diverse goals for offering card issuance and PIN solutions. Clients range is size and scope from single branch institutions; to larger institutions that offer an emergency card replacement; to major institutions implementing full-enterprise, in-branch issuance in thousands of branches issuing debit and credit plastic to their customers. "Each solution is designed to meet the specific needs and requirements of the financial institution," says Pond.
The instant issue market continues to grow and, in recent years, there has been a dramatic shift for global adoption. Datacard has 25,000 instant issuance installations worldwide, more than 7,500 CardWizard branch installations, over 200 successful EMV installations worldwide and 80% US market share for instant issuance.
"We see tremendous opportunity to grow our instant issuance customer base in other global regions and in other markets, such as retail," Pond says. "Our broad solutions offerings provide financial institutions with options to best fit their business model and empower them to conduct business the way they choose. Datacard Group takes a consultative approach that allows us to collaborate with our customers and create an instant issuance solution that aligns perfectly with their business strategies.
"We are a single solution provider that has integrated the best software, hardware, supplies and services into one seamless instant issuance solution. Our diverse instant issuance portfolio includes: Datacard CardWizard issuance software, desktop retransfer card printers, desktop direct-to-card printers, desktop embossers, desktop embossers and direct-to-card printers, all in one."
Credit unions were the first organisations in the industry to implement instant issuance. However, now banks and retailers of all sizes are installing the technology, and, as the market continues to mature, new opportunities are emerging, such as prepaid cards, smartcards and kiosks.
The type of card that is most instantly issued is the debit card from financial organizations. However, it has many benefits for any type of payment card, such as prepaid, gift, ATM, and so on.
Types of implementations can include traditional branch locations; retail stores and mall locations; check-cashing outlets; companies which pay their employees on cards which are also used as their payroll; identification that is complete with a photo of the individual; university and campus debit and student ID cards, and self-service kiosks such as those that issue personalised gift cards
Says Pond: "Our instant issuance solutions provide banks, credit unions, retailers and other financial card issuers with powerful new ways to drive revenue and engage consumers. Consumers can walk into a branch location and within minutes walk out with a highly personalised, permanent credit or debit card.
Pond says Datacard Group offers everything banks and other issuers need for a successful instant issuance programme, including software, systems, supplies and a full range of consultative services and technical support. "We configure fully integrated solutions to align with the way our customers want to do business," he adds.
With more than 7,500 installations worldwide, Datacard CardWizard issuance software is the world’s top-selling solution for instant issuance of Visa and MasterCard debit and credit cards. And CardWizard software is integrated with more than 30 card management systems and network activation switches.
Pond continues: "Our professional service experts can help issuers with every phase of their programmes – from initial assessments and solution design to deployment and ongoing optimisation. We also offer a full range of standard and customised Datacard certified supplies designed to optimise productivity and minimise per-card costs. Print ribbons, topping foils and other supply items are system-matched with our desktop printers and embossers to ensure consistent performance and exceptional card quality.
"Our financial instant issuance solutions make issuing EMV smartcards fast, easy and secure. They also can be easily upgraded to accommodate mobile payment offerings.
"Financial instant issuance is a direct reflection of our commitment to Secure Issuance Anywhere. Our solutions give banks the power to align with consumer demand for instant and personalised solutions. It gives them the power to issue financial cards centrally or instantly – or create a hybrid model with both central and instant capabilities.
Datacard has various competitors around the globe – and in the US these include Magtek, Custom Card Solutions, EFT Source
Pond concludes: "As a market leader, Datacard Group recognises its responsibility to the industries we serve. We maintain a strong presence in a variety of partnerships, associations, standards committees and strategic alliances.
"Our active participation helps us influence emerging standards for the good of the industry and anticipate both the short- and long-term needs of our customers. In addition, we work with many companies for our CardWizard software application to be integrated into card management and card authorisation systems.
"This is extremely important for financial organisations to easily implement instant issuance into their programmes. Currently, we are integrated into more than 30 systems."
